Superannuation funds say any moves by the Gillard government to water down super concessions for only the highest income earners would still risk undermining confidence in Australia’s $1.5 trillion retirement savings system.

Pauline Vamos, chief executive of the
Association of Superannuation Funds of Australia
, said high income savers were hit by recent falls in annual contributions limits while those on salaries of more than $300,000 suffered a doubling in the contributions tax.

Ms Vamos said it was crucial that tax changes were simple to implement and took into account the fact that individuals had different savings patterns over their working lives.

“It is appropriate for there to be a ceiling on tax concessions. But it is important for any system to be as universal as possible. And changes should be effective and not just taking money and putting it elsewhere," Ms Vamos said.

“People who are on higher incomes today have not been on high incomes for all their working lives. Any blunt instrument always has unintended consequences," she said.

In July last year the maximum amount that savers across the board could inject into super annually was limited to $25,000. Previously individuals over the age of 50 could put in up to $50,000 a year.

In the May 2012 budget, Treasurer Wayne Swan said individuals earning more than $300,000 a year would pay 30 per cent contributions tax, rather than the 15 per cent paid by everyone else.

Ms Vamos was speaking ahead of a meeting in Melbourne on Wednesday of Financial Services Minister Bill Shorten and wealth industry executives, where the looming federal budget and tax concessions on super are expected to feature.

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“Our superannuation system needs to be consistent and needs to be sustainable.That is what I have been talking to the industry about during this reform process and it is the question we will be focused on at the Superannuation Roundtable in Moonee Ponds tomorrow," Mr Shorten said.

It is understood that Financial Services Council chief executive John Brogden discussed super taxes at a meeting with Mr Shorten in Canberra on Tuesday.

Tax changes that Mr Swan is mulling over include raising the earnings tax for higher-income earners and placing a capital gains tax on properties held by self-managed super funds when they are sold by schemes in the pension phase. Not all the measures would raise much income.

ASFA estimated that even if the government raised the earnings tax to 17.5 per cent from 15 per cent for all fund members who were in savings mode, it would only increase annual revenue by $500 million. This assumes a 5 per cent rate of return.

If the rate of return were doubled to 10 per cent, Mr Swan could expect to pocket an extra $1 billion annually, ASFA said.

A recent study by investment consultancy Mercer showed super tax breaks in Australia were far less generous than in many other countries with developed retirement savings systems.

Calculating tax concessions on offer in nine countries, such as the rates of tax payable on employer and employee contributions, investment income and retirement income, Mercer found that the United Kingdom, United States, Canada and the Netherlands all had more generous systems than Australia.

The Coalition has pledged to abolish the contribution tax rebate for 3.6 million workers on low incomes.

The government has scrapped plans to introduce a tax on super payouts for people with balances of about $1 million, but has refused to rule out other changes.